To date, Jay Ward has a cumulative earnings of $95,000. This week he is paid $3,000. The total amount of Social Security Tax for this week is: (Assume a rate of 6.2% on $97,500 for Social Security and 1.45% for Medicare). ...?
The question I have is do you include what the employer would pay as well as what the employee would pay? If not, the Social Security Tax would be $155. If so, it would be double, or $310. $97,500 Social Security base-95,000 Cumulative Earnings=2,500 $2,500 * 6.2% (0.62) = $155